St. Louis, Missouri
June 7, 2004In a move
toward providing the ethanol industry with a standard platform
for measuring the fermentation characteristics of corn, the
National Corn Growers Association
(NCGA) and Pioneer Hi-Bred
International, Inc., today signed a letter of intent for
Pioneer to donate a tool designed to quickly quantify the
ethanol yield potential of corn grain in the dry-grind process.
The technology will allow corn
growers to provide grain that could improve the efficiency of
ethanol plants and also will allow the seed industry access to a
single standardized calibration with which to measure corn
hybrid ethanol potential.
"With so many new ethanol
plants coming online, the ethanol industry is moving to a whole
new level," said NCGA Corn Board member Bill Horan. "At the same
time, however, there is the potential for multiple measuring
systems. One standardized platform would be a key step toward
optimizing the efficiency of those plants."
NCGA intends to enter a
licensing agreement with Pioneer, in which the seed company
would provide its High Total Fermentable (HTF) Rapid Assay
technology for use by the corn industry. The whole-grain near
infrared (NIR) rapid assay from Pioneer is the first analytical
tool developed that enables the seed and ethanol industries to
predict the potential value of corn for ethanol production.
Additionally, growers will benefit by having a tool that helps
them manage corn sales in a new way.
Pioneer would provide NCGA a
royalty-free license to the company's HTF calibration and
related data. This license would include rights to sublicense
and use the data in future calibrations. NCGA would coordinate
all activities related to establishing a single grain assay
standard that is accurate and fair for corn growers and the
ethanol industry.
"Our intent is to improve the
profitability of corn growers and the seed and ethanol
industries by accelerating the acceptance of a standard that is
accurate and fair," said Horan. "This is good news for U.S. corn
growers and the growing ethanol industry."
"The dry-grind ethanol industry
is rapidly expanding and providing a growing marketplace for
U.S. corn growers and their products," said Diane Bridgewater,
vice president, business director, North America, Pioneer.
"Pioneer is very excited about working with NCGA to provide this
technology. We feel accurate grain quality standards will
benefit both growers and the ethanol industry."
Dry grind ethanol plants would
be able to license from NCGA an industry standard calibration
for measurement of grain with HTF. This measurement would allow
ethanol plants to source grain with a higher potential ethanol
yield, improving the efficiency and profitability of these
plants. Grain elevators would also be able to license the
calibration from NCGA, allowing the elevator to source grain
that has potential to provide improved ethanol yield to the
ethanol plants those elevators serve.
According to the letter of
intent, NCGA would coordinate activities with other seed company
providers, relevant trade and industry associations, ethanol
producers, grain purchasers and equipment vendors and
appropriate government agencies. In addition, NCGA would set and
collect royalty payments from third parties for licensed access
to the calibration.
NCGA also would oversee
relationships with research and testing laboratories and
establish a technical oversight committee to review all
calibration upgrades.
On an ongoing basis, hybrids
will be collected and reviewed, and necessary modifications will
be made to the calibration in order to maintain accuracy in this
standard platform.
NCGA and Pioneer hope to
announce the formal agreement in mid-summer. Further program
activities will be announced as they develop.
The National Corn Growers
Association mission is to create and increase opportunities for
corn growers in a changing world and to enhance corn's
profitability and usage. NCGA represents nearly 33,000 members,
25 affiliated state corn grower organizations and hundreds of
thousands of growers who contribute to state checkoff programs.
Pioneer Hi-Bred
International, Inc., a subsidiary of
DuPont, is
the world's leading source of customized solutions for farmers,
livestock producers and grain and oilseed processors. With
headquarters in Des Moines, Iowa, Pioneer provides access to
advanced plant genetics, crop protection solutions and quality
crop systems to customers in nearly 70 countries. DuPont is a
science company. Founded in 1802, DuPont puts science to work by
solving problems and creating solutions that make people's lives
better, safer and easier. Operating in more than 70 countries,
the company offers a wide range of products and services to
markets including agriculture, nutrition, electronics,
communications, safety and protection, home and construction,
transportation and apparel. |